National energy ratings to shut the door on leaky homes

Buyers and renters could know the energy efficiency of their home before moving in if all housing is required to have a performance rating.

"The energy rating on your fridge tells you if you are cooling your food and drinks efficiently," Property Council of Australia chief executive Mike Zorbas said.

"But there is no national rating scheme up and running to tell you about the efficiency of heating or cooling your whole home – your most important purchase of all."

Buildings account for more than half of Australia's electricity use and almost a quarter of greenhouse gas emissions.

The Property Council and Green Building Council of Australia on Thursday released a report setting out steps to help the country reach its climate goals by using energy more efficiently.

Launching the research, Assistant Minister for Climate Change and Energy Jenny McAllister said it will make "an important contribution to an important project" but did not commit to a rollout.

The Albanese government is developing a national energy performance strategy and next month's federal budget will include funding for a tool for people to check the energy performance of their home. 

"It's previously applied only to new homes. We'll upgrade that tool so that we can apply it to existing homes," she said.

The industry report recommends phasing out of fossil fuels in existing buildings and appliances, which would mean the end of gas water heaters and cooktops in Australian homes.

Mr Zorbas said property companies were global leaders in sustainability and were well-positioned to deliver high-impact but cost-effective ways to help achieve the nation's net-zero goals.

Australia must also have climate resilient buildings that can withstand more frequent and severe weather events caused by climate change, the report says.

Requiring all new residential and commercial buildings to be all-electric when people move in and taking action on emissions from the entire construction process are also recommended.

Green Building Council chief executive Davina Rooney said a reliable national efficiency rating system would allow buyers and renters to easily compare homes on the market.

"Locally, we're living with the impacts of climate change and a cost-of-living crisis, while healthy, affordable, energy efficient homes are increasingly out of reach for everyday Australians," she said.

Ms Rooney said the skills and capacity of the workforce also needed a boost so Australia could be equipped with low-carbon, resilient buildings.

"Transitioning 85 per cent of homes off gas by 2040 requires retrofitting hot water systems in 5000 homes every week until 2040, starting now," she said.

The report also suggests initiatives and incentives for vulnerable people so not just the wealthy benefit from cleaner, more energy-efficient housing.

But Brett Heffernan, chief executive of industry body Gas Energy Australia, said the Every Building Counts report ignores the future supply of "renewable" liquefied natural gas (LPG).

He said two million homes and 130,000 businesses relied on LPG and conventional LPG would be replaced by a zero-emitting alternative by 2045.